Pertaining recent media reports, Apple continues to increase its manufacturing and development capabilities outside of mainland China. According to Nikkei Asia, Apple will relocate major iPad technical capabilities to Vietnam, increasing the country's chances of becoming an alternative manufacturing base outside of China. Meanwhile, the Wall Street Journal reported on Friday that Apple intends to manufacture a quarter of the world's iPhones in India, following Foxconn's ambitions to develop new plants in the nation in order to produce 50 million iPhones per year.

Vietnam Transfer

Nikkei Asia said that Apple is transferring iPad product development resources to Vietnam. According to reports, Apple is collaborating with China's BYD, a main iPad manufacturer, to relocate new product introduction (NPI) resources to Vietnam.

According to Nikkei Asia, NPI entails a technology business, such as Apple, working with suppliers on the design and development of new goods to ensure the blueprints can be made appropriately. According to reports, this is the first time Apple has moved NPI resources to Vietnam for such a critical gadget.

With respect to Nikkei Asia, engineering verification on a new iPad model will begin in mid-February of next year. In the second half of next year, the model will be available. According to Nikkei, BYD was also the first supplier to assist Apple in shifting iPad assembly to Vietnam for the first time in 2022. As per the report, NPI engineering resources are being shifted to entry-level models rather than the premium iPad Pro.

According to Nikkei Asia, NPI requires significant resources from both the tech business and its suppliers, such as engineers and investment in lab equipment for testing new features and capabilities. Currently, the majority of Apple's NPI is done in China, in partnership with engineers in Cupertino, to take use of the country's decades of hardware manufacturing experience.

Furthermore, according to Nikkei Asia, Apple also intends to move some NPI procedures for the iPhone to India. This comes after the Wall Street Journal claimed, citing sources, that Apple intends to manufacture a quarter of the world's iPhones in India within the next two to three years.

Geopolitical Concerns

For some time now, Apple has been steadily increasing its production capabilities outside of China, despite geopolitical risks that are driving the corporation to reconsider its China strategy. Outside of China, Vietnam is emerging as one of Apple's two primary electronics production hubs.

Apple has asked suppliers to create extra capacity in Vietnam for practically all of its products, except the iPhone, ranging from AirPods and MacBooks to Apple Watches and iPads. Production of the Apple iPhone 15 began in August at Foxconn's Sriperumbudur facility in India.